Council revises retail cannabis regulations

In a nearly unanimous vote, City Council approved changes to regulations governing retail dispensaries as residents near a potential cannabis retail location raised concerns primarily about traffic.

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After a nearly one-hour public hearing in which about a dozen residents spoke, City Council approved amendments to cannabis regulations (O-15-23) by a 7-1 vote at its regular meeting on April 10. Councilman At-large Jeremy Mojica was the lone dissenting vote; 6th Ward Councilman Joseph Gibilisco was absent. City Council later unanimously approved another ordinance (O-16-23) that outlines the application screening process for retail licenses, including advisory committees that would review applications.

Most of the local residents who came before the governing body during the ordinance’s public hearing raised concerns specifically about traffic near a potential cannabis retail site on Routes 1/9 near East Grand Avenue and Barnett Street. While speakers focused largely on the location of a potential dispensary at the former White Castle site, the ordinance under consideration would amend regulations about where retail cannabis dispensaries could be located within the city (B-2 and B-3 zones) but not specific locations.

Cannabis regulations were adopted in 2021 and amendments last year permitted retail licenses. In March, City Council adopted a resolution in support of a cannabis retail dispensary that has targeted a Routes 1/9 location as part of its license application to the state Cannabis Regulatory Commission (CRC). The site is located within the B-3 Highway Business Zone and abuts an R-2 Residential Zone and I-L Industrial Zone. Similarly, the governing body in December 2021 adopted a resolution in support of two cannabis manufacturing and cultivation sites — not retail dispensaries — in the city. Rahway’s cannabis regulations allow for two licenses in each of the five classes, including retail.

Concerns about traffic

Charles Ruel of East Scott Avenue said traffic is “absolutely terrible” since Quick Chek opened between East Grand And Scott avenues. “You have trouble getting out of your own driveway,” he said, and a dispensary is only going to increase traffic. “Plus, I don’t know what other kind of people are coming from other towns,” adding that Routes 1/9 provides for a quick getaway for any potential robberies.

“Any riff-raff is going to park in front of our homes and smoke their marijuana,” East Scott Avenue resident Gina Ruel said. “Put it in a place where you don’t have residents, where you don’t have children. This will make us feel unsafe.”

The location has no exit on Routes 1/9 — only East Scott Avenue — and that will add more traffic, in addition to not having much parking there, another resident suggested. The ordinance would allow drive-through for pickup orders – the second in New Jersey. The only drive-through dispensary in New Jersey is located in Lodi, near Routes 17 and 80, and opened last summer. Some speakers suggested moving the location a “couple of buildings down,” where it’s more of a business zone. Others suggested the former Galaxy Diner location on St. Georges Avenue might be more appropriate for cannabis retail.

After several residents spoke, Mayor Ray Giacobbe, Jr. interjected that nothing would be decided on the potential site that night but rather the ordinance only sets the zoning of where cannabis retail would be allowed. “Most of theses issues addressed tonight do not pertain to the zoning ordinance,” he said.

“This is not the final say whether this goes into the location you’re concerned about,” the mayor told residents. As a conditional use, any business that applies for a dispensary will have to go before the Planning Board. Any application before the Planning Board must notify property owners within 200 feet.

“The reason we chose the parameters we did is because of the research and due diligence myself and the City Council did to ensure we’re being strategic about where these businesses go,” the mayor said.

Richard Poklemba of East Grand Avenue recalled that when White Castle operated on that site, only a few cars would make the area bottleneck with traffic. If a facility is going to use cash, he also warned of the “potential for people to come by and shoot back to Newark.”

Several speakers said they were not against cannabis retail dispensaries in general and the benefits and revenue to the city but feared the quality of life for those living near dispensaries.

Main Street resident Beth Battinelli relocated from Massachusetts where recreational dispensaries have been in operation for several years. “They’re not like what it sounds like what we’re fearing. If we had an idea what it looked like, maybe it wouldn’t be as scary,” she said, adding that she supports the conversation.

Councilman At-Large Jeffrey Brooks recalled a potential smoke shop application before the Planning Board several years ago. Concerns were raised and because the proposed operator could not meet necessary standards, the board denied the application. “That point in the process is a bit far out,” he said. “We have to address the traffic issue as its own issue,” he said.

Cannabis was approved overwhelmingly in Rahway, Brooks said, and it’s “a matter of how we work and benefit from that. We also have to be aware of where our fears come from. No one here wants Rahway to look like the Bronx. I don’t see that being the case,” Brooks said.

Mojica, the only Council member to vote against the ordinance, said the city has worked for years to shed the stigma of being associated with a state prison. Now, Rahway would be known for a cannabis drive-through. “It makes us the laughingstock of the area.”

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